Comments on: LIVE Ask The Headhunter WNYC Radio – July 23

By: Nick Corcodilos

Nick Corcodilos — Fri, 24 Jul 2009 00:21:45 +0000

Ray: I’m not an expert at converting salary to fees… but rule of thumb among consulting firms is that they bill at around 2X what they pay the consultant they assign to their client… This covers benefits, payroll processing, taxes, benefits, insurance, profit. Personally, I’d expect about 1.7X my salary at least. Also remember that you can write a lot off as a 1099 worker, but you must also be able to prove to the IRS that you qualify as an independent contractor. Rules are pretty strict. Check the IRS site, look up “independent contractor rules.” Don’t forget that you may need errors/omissions liability insurance unless your contract waives liability. Perhaps someone more knowledgeable will chime in on this…

By: Ray

Ray — Fri, 24 Jul 2009 00:07:26 +0000

I am thinking of moving from W2 to 1099 status with my company(W2s can’t telecommute, 1099s can). I do not use their medical (have my own) but do get about $140k Life Insurance free which I’d like to keep/replace. Given that I’m making about $35/hour and would need to cover both halves of FICA, what hourly rate would
give me the same net income? 40 years ago, the freelancer needed to earn 40% to break even, but not sure that’s still a good figure.

By: Nick Corcodilos

Nick Corcodilos — Thu, 23 Jul 2009 16:29:25 +0000

@Anita: If there’s no other comp but commission (and I think that’s good – it will get you to sink or swim quickly) then I believe the commission should be at least half of the fees you bring in. That’s how I started out and I can tell you, it works. Make sure he teaches you all aspects of headhunting, including recruiting candidates and bringing on new company clients. I wish you the best! Here’s the article I was talking about during the chat — I didn’t have the link handy: http://www.asktheheadhunter.com/habeaheadhunter.htm Please let me know how this turns out for you. Be patient — it takes time to get going.

By: Anita Gold

Anita Gold — Thu, 23 Jul 2009 16:06:27 +0000

Re: your Headhunter Apprenticeship Response to me — What would be a reasonable commission to expect from the start (assuming of course that I will have some success)? I will be receiving NO OTHER COMPENSATION. However I feel this is a great opportunity to learn from an old hand. He is willing to share his time, expertise, office space, etc.